DZP has advised DNB Bank Polska S.A. in negotiating and signing documentation for the first issue of green bonds by a local authority in Poland. The issuer is the City of Łódź.

After signing the agreement, Łódź is set to raise PLN 418 million, PLN 50 million of which will comprise green bonds. Bank Pekao and DNB Bank Polska are the joint lead arrangers of the issue. The two institutions have undertaken to purchase all the bonds in the programme on the primary market.

The funds raised will be used by Łódź, inter alia, to:

• construct and modernise wastewater treatment systems, which will help reduce water and land contamination,
• finance the road reconstruction needed to implement a low emission urban transport network project.

The client was advised by DZP lawyers Rafał Grochowski, Partner, and Martyna Komorniczak, Associate, from the infrastructure finance and debt issuance team.